Context

The preparation of tender documents and the selection of the appropriate tender format are critical tasks in achieving procurement objectives. Documentation, whether for open tendering, selective tendering (EOI) or limited tendering, is to adhere to the five procurement principles that underpin all VGPB policies in addition to maintaining high standards of probity in all phases of the tender process.

The tender documents should be aligned with the outcome of a business case study that considers a range of factors including stakeholder requirements, policy setting/relationships, market analysis, demand assessment (current/anticipated), risk analysis, total cost of ownership assessment, contractual arrangements, contract management framework, etc. The level of analysis should reflect the nature and complexity of the procurement being proposed.

High value/high complexity projects should consider applying the structure of the Good Practice Guidelines for Developing a State Purchase Contract Business Case Guidelines (723 KB DOC) even if the proposed procurement does not directly concern the establishment of a State Purchase Contract or Open State Purchase Contract.

The tender documents should be clear in their requirements and instructions having regard to efficient government and reducing the burden on business. Tenderers should be provided with an indication of the anticipated time frames for completing various tender process stages which are to be noted in the tender documentation.

Principles and Key Requirements

1. Clarity and Comprehensiveness of Tender Documents
Tender documents should address the following matters:

• Specify the conditions for participation (ensure that a potential supplier has the legal, commercial, technical and financial abilities to fulfil the requirements of the procurement)
• detail the information and documents suppliers are to submit
• clearly identify the nature, scope and the quantity of goods and services required including outputs required for services or the functional and performance requirements for goods
• specify the criteria to be used in the evaluation of responses and detail the evaluation process
• detail the importance given to different criteria (if relevant)
• adopt a high degree of consistency for reporting to facilitate equitable comparison between responses; include standard response formats wherever appropriate
• specify the scope of financial information required from the supplier
• specify technical specifications wherever appropriate in terms of performance and functional requirements rather than design or descriptive characteristics
• base technical specifications on international standards where such are applicable and exist except where the use of an international standard would fail to meet the procuring entity’s program requirements or would impose greater burdens than the use of a recognised national standard
• technical specifications may not require or refer to a particular trademark, trade name, patent, copyright, design or type, specific origin, producer or supplier unless there is no other precise or intelligent way of prescribing the procurement requirement; in such cases the term ‘or equivalent’ is to be used
• encourage the offer of innovative solutions which contribute to a department’s ability to carry out its business in a more cost-effective manner
• consider environmental factors
• consider the supply chain relationship operating through a principal contractor
• identify a project contact person and the arrangements for receiving relevant information which may include briefing sessions and dissemination of additional information, procedures for submitting questions, arrangements for site visits or notification of changes to tender procedures
• clearly detail the tender delivery/submission/lodgement instructions.

Other requirements

1. Satisfying the Conditions for Participation
Procurement entities are to evaluate the financial, commercial and technical abilities of a supplier having regard to supplier’s business activities both within and external to the local market.

Technical Specification means a tendering requirement that:
(a) sets out the characteristics of:

(i) goods to be procured, including quantity, performance, safety, dimensions, processes and methods for their production and any associated warrantees, guarantees or on-going support provisions, or
(ii) services to be procured, or the processes or methods for their provision, including any applicable administrative provisions; or

(b) addresses legislative and regulatory requirements, terminology, symbols, packaging, marking or labelling requirements, as they apply to a good or services

Tender documents may require relevant prior experience but should not impose a condition that the supplier has previously been awarded a contract with the procurement entity or has prior work experience in Australia.

2. Market Research and the Integrity of the Tender Process
A procurement entity may conduct market research in developing specifications;
or
Allow a supplier engaged to provide market research, design, prototype development or consulting services to participate in procurements related to such goods or services, provided procedures are implemented to ensure that the supplier is not given an unfair advantage over other suppliers. Procedures could include full disclosure of market research information, supplier briefing sessions or defining requirements in generic terms.

3. Informing Tenderers of their Status in a Tender Process
The principle to be applied in the management of the tender process is to balance the objective of informing tenderers as soon as possible of their status in the continuing tender process while maintaining the integrity of tender submissions and tender processes.

Tenderers should be informed:

• that their submission has been received by the agency
• that they have been shortlisted as part of an EOI or RFT process
• when the tender process is concluded and whether they have been successful or otherwise
• that a tenderer, if unsuccessful, is able to obtain a full debrief of their submission

Receipt of tender
(refer Policy – Receiving and Recording Tender Submissions Policy)

The above policy details tender acceptance notification tenderers and the acceptance procedure for late tenders in exceptional circumstances.

Shortlisting of tenders
Tenderers are to be informed as soon as practicable and preferably no later than 5 working days after the conclusion of the shortlisting stage of their status in a continuing tender process. Non shortlisted tenderers are to be informed that a full debrief of their submission is available at the conclusion of the tender process in order to protect the integrity of the tender.

Notification of tender conclusion
Successful and unsuccessful tenderers are to be notified of their status after conclusion of the tender process.

Availability of a tender debrief
All unsuccessful tenderers are to be informed as soon as practicable and preferably no later than 7 working days after finalisation of contract that a full debrief of their submission will be provided if requested.

Related VGPB Policy and DTF Guidelines

Specification Writing Guidelines (297 KB DOC)

Related DTF Templates and Forms

Request For Tender (Parts A-E) - Standing Offer Agreements (547 KB DOC)
Request For Tender (Parts A-E) - One-off Supply (597 KB DOC)
Expression of Interest Template (223 KB DOC)

Links to relevant websites

Nil

Version Control Information

Version Number	2.2
Release Date	November 2008
Further Information	Strategy and Policy, Government Services Division, Department of Treasury and Finance
Phone	(+613) 868 32944
Email	vgpb@dtf.vic.gov.au